Intellectual Property Right and Innovation

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This research has analyzed the role of intellectual property right (IPR) in promoting innovation in Japan, focusing mainly on patent. It has addressed three areas. The first one is the relationship between the strength of IPR and innovation. The research has found that licensing fees in Japan have increased significantly more in R＆D intensive industry in the latter period of 1990s during which the IPR protection had been strengthened significantly. It has also studied the role of IPR in cumulative innovation and efficient contract terms of cross licensing.The second area of research is international aspect of IPR. It has analyzed theoretically how international exhaustion of IPR affects incentive for R＆D and efficiency of the use of research results. It argues that the patent right for controlling parallel imports should be used only as a measure to enforce vertical contract for territorial restriction. It has also studied the role of IPRs in the privatization process in transition and developing countries.The third research area is the IPR policy in coming years. It has analyzed patent pool and technical standard. It has clarified under what circumstances inter-firm cooperation becomes important for innovating technical standard, (2) why such cooperation fails sometimes due to the appearance of outsiders and (3) how competition can be ensured despite inter-firm cooperation for patent pool. The research has also covered the efficient damage recovery system for infringement of IPR.